Exam 13: Fundamentals of Controlling

In a behavioral sense,controls and on-the-job freedom compliment each other.

Which of the following is NOT a requirement for an effective control system?

What are some characteristics of effective controls?

The exception principle is the concept that supervisors should concentrate their investigations on activities that deviate substantially from standards.

Conrad,an accountant for a large marketing company,develops projections and proposals for the annual budget based on the budget of the previous year.This is an example of what type of budgeting?

_____ are performance criteria chosen for assessment because they are key indicators of overall performance.

_____ refers to open-book management in which all financial information is shared with employees and other stakeholders.

What is managerial control?

The word control often elicits negative reactions.

Companies often give cost-cutting orders as a result of competition from other businesses.

Identify and distinguish between the three types of time factor control mechanisms identified in the text.

Historical data does not provide much value when budgeting for the future.

Tangible standards are standards of performance that are difficult to measure.

Since controls are inflexible,supervisors and employees need to be able to adapt as needed.

When top management issues an order to cut costs across the board,supervisors should stop buying supplies and eliminate preventive maintenance programs.

In which of the following situations are oral and written reports most necessary?

Which of the following types of control mechanisms is useful for controlling a problem prior to its happening?

_____ refers to the technique of evaluating some number of items from a larger group to determine whether the group meets acceptable quality standards.

Which of the following statements is true about intangible standards?

Describe the three types of specialized controls,and for what they are used.